Texas is set to receive $209 million as part of the legal settlement for Volkswagen’s decade-long scheme to cheat on diesel emissions tests in the United States and elsewhere. That is because the German automaker sold more than 40,000 non-compliant vehicles in the state, resulting in Texans breathing dirtier air.

The money is for projects that reduce smog-forming nitrogen oxides. It is in addition to civil penalties and other legal settlements, which include an agreement for the company to invest in zero-emission, all-electric vehicle technology and infrastructure.

For Texas, the road to cleaner air began in early October. Here are three steps the state needs to take:

Secure funding

Before Texas can receive its share of the money, it must become a beneficiary of the trust, which was set up to compensate states for the emissions-cheating scandal. This first step is also the easiest. It is a paperwork exercise in advance of the hard decisions.

Pick a lead agency

Gov. Greg Abbott should pick the Texas Commission on Environmental Quality, or TCEQ, as the lead agency for managing these funds. That is the recommendation of the Texas Clean Air Working Group, which includes local governments, business groups and environmental organizations. Environmental Defense Fund is among the group’s members.

We reached this conclusion because of TCEQ’s experience administering the successful Texas Emissions Reduction Plan, or TERP, which provides funding for upgrading or replacing heavy-duty vehicles and equipment to attain the goal of reducing pollution by getting rid of older, dirtier engines.

Simply, it would not make sense for another state agency to take the lead. Texas needs to move quickly because other states have selected their lead agencies already.

Prioritize projects

This is toughest part because there are so many worthy projects. There are 10 categories for eligibility, with an emphasis on the potential for significant reductions in smog-forming nitrogen oxides. The categories include:

Buses used in school/shuttle/transit applications (repower/replacement);

Trucks used in local freight;

Charging equipment for light-duty zero-emission vehicles.

It is important for the state to get public input on potential projects. EDF, for one, is evaluating the best ways to use the VW funding in Texas. We will share our recommendations in future posts.

Texas faces a Dec. 1 deadline to submit its documentation to become a beneficiary. Once the trustee approves beneficiary status for Texas – no later than Jan. 30, 2018 – the state will have three months to develop and distribute a plan for spending the money.

It is a lot of work. But the potential for cleaner air quality will be worth the effort. EDF is looking forward to being part of the conversation, and we encourage other stakeholders to join in the effort.

44 companies — out of more than 3,500 partners in the program – were honored for their accomplishments in freight supply chain environmental performance and energy efficiency.

This year’s well-deserved accolades went to 43 truck carriers, seven shippers and one barge carrier – including some SmartWay partners in Texas.

The awards demonstrate that environmental stewardship and economic success go hand in hand, and are an example of EPA’s commitment to recognizing companies that achieve those “win-wins.”

Spotlight on Freight Sustainability Leaders in Texas

Four Texas truck carriers – High Country Transportation, Jack Key Auto Transport, Mustang Express and OutWest Express – were honored with the SmartWay Excellence award this year, demonstrating their commitment to the SmartWay program goals of improving efficiency in the freight industry, reducing fuel use, reducing air pollution, and saving money.

EDF congratulates them – and applauds all 202 SmartWay partners in Texas (up from 177 in 2015.)

These freight leaders include prominent names such as AT&T, Dell Inc., PepsiCo, Inc., and Toyota. In 2013, AT&T (headquartered in Dallas) became the largest wireless carrier to join the program, and Dell Inc. (headquartered in Round Rock, near Austin) has been a SmartWay member since the program’s inception in 2004.

About the SmartWay Program

EPA’s SmartWay program is a market-driven initiative that empowers businesses to move goods in the cleanest, most energy-efficient way possible, while protecting public health and reducing the impacts of climate change.

The program emphasizes measuring environmental performance criteria, such as fuel efficiency and use of cleaner technologies. Membership is voluntary, so businesses choose to make energy-efficient transportation decisions and are then eligible to receive national recognition for achieving high environmental performance.

The ultimate goals of the program are to accelerate the availability, adoption and market penetration of advanced fuel efficient technologies and operational practices in the freight supply chain.

SmartWay has an impressive track record of environmental and economic success. Since 2004, the EPA program has saved more than 170 million barrels of oil — the equivalent of eliminating annual energy use in more than six million homes.

SmartWay’s clean air achievements (almost 73 million metric tons of carbon dioxide, 1.5 million tons of nitrogen oxides, and 60,000 tons of particulate matter emissions avoided) are also a boon to public health.

Companies affiliated with the SmartWay Program have saved almost $25 billion in fuel costs to date, supporting the North American freight industry while lowering costs for the consumer.

The classic “chicken or the egg dilemma” is often used to talk about cause and effect. Although this question is usually posed as a philosophical examination of some obscure topic, we now have a clear case for true causality: port clean truck programs result in cleaner trucks at ports.

Last week, the Port of New Orleans joined the growing list of ports who have launched formal clean truck programs to encourage trucking companies to replace older, more polluting trucks with newer trucks with fewer emissions. Environmental Defense Fund (EDF) supported the Port of New Orleans’ efforts to develop their “Clean Truck Replacement Incentive Program” (Clean TRIP), which will be funded from the EPA’s Diesel Emissions Reduction Act Program. The funding will assist 20 truck operators in replacing their dirtier diesel trucks by offering up to $35,000 or 50 percent of the cost of a 2012 or newer truck. In addition to the immediate opportunity to reduce emissions from the first 20 trucks, the port will also be able to incentivize more truck replacements in the future, by pursuing additional grants or developing other innovative funding approaches.

The Port of New Orleans joins the Port of Houston as the only two ports on the Gulf Coast with clean truck programs. The efforts in Houston have been successful (and cost-effective, according to a peer-reviewed scientific study conducted by EDF authors) in reducing smog-forming pollution and cancer-causing diesel particulates, but we estimate there are still more than 2,500 trucks operating at the Port of Houston that would benefit from replacement.

EDF has been a strong advocate for ports to create clean truck programs because of the significant benefits that result from these programs:

Reduced emissions from trucks operating at ports – Unlike long-haul trucks, trucks hauling containers and other cargo at ports (so-called “drayage trucks”) are the oldest trucks in a fleet. Ports tend to be magnets for older trucks since there is less risk if the truck breaks down in the vicinity of its destination, rather than hundreds of miles away on a long haul trip.

Engagement with local drivers and businesses – Because of the nature of short-haul drayage operations, truck owners are typically owner-operators or owned by local businesses. Initiatives at ports like clean truck program incentives help to build relationships between the local port authority and port users, paving the way for other opportunities to collaborate on economic and environmental initiatives that benefit local communities.

Community benefits near port facilities – Goods movement operations at ports concentrate many types of heavy-duty equipment and vehicles, such as ships, tugboats, locomotives, cargo-handling equipment, and drayage trucks. In many cases, trucks driving to and from port facilities (or waiting to enter port facilities) can have additional health impacts on communities because they may be using roadways near schools, daycares, or nursing homes, and other areas where sensitive populations could be exposed to emissions from trucks.

EDF commends the Port of New Orleans for joining the list of ports that have taken specific action to reduce truck emissions and protect community health, and we encourage other Texas and Gulf Coast ports to follow suit. EDF is available to help, so let us know how we can work together.

Everything is bigger in Texas, they say. Now, with the expansion of the Panama Canal this summer, we may start to see bigger ships in some Texas ports, too. These bigger ships would represent more business for Texas, but there could be a downside. Since these ships have huge engines that emit dangerous pollutants, we could see – and breathe – dirtier air. That’s why it’s so important for us to carefully manage these changes.

In late June, the first post-Panamax ship traveled through the newly-expanded Panama Canal, signaling a new era for mega-containerships and other super-sized vessels that can carry up to three times as much cargo as before. (“Panamax” was the term for the Panama Canal Authority’s size limit for ships traveling through the canal, The new mega-ships are sometimes called “Neopanamax” vessels.)

The expansion of the Panama Canal means that the near monopoly held by west coast ports, like the Ports of Los Angeles/Long Beach and others, on container trade from Asia may be ending. Instead of offloading cargo in southern California and relying on trains and trucks to transport goods to inland regions in the U.S., shippers will now be able to offload containers from Asia at U.S. ports on the Gulf or East Coast — taking advantage of potentially lower shipping costs and improved economies of scale.

Potential Diversion of Cargo from the West Coast to Texas

No post-Panamax vessel has called at a Texas port via the Panama Canal — yet.

But Texas ports stand to benefit if shippers moving goods from Asia decide to divert cargo from the U.S. West Coast through the newly-expanded canal.

Besides being geographically closer to Asia than East Coast ports (such as Savannah, Charleston, Norfolk, and New York),Texas is home to four major metropolitan areas experiencing rapid growth — Houston, Dallas-Fort Worth, San Antonio, and Austin. These fast-growing cities help to support strong demand for consumer goods, many of which come from Asia.

Texas is also a powerhouse in the oil and gas industry. Houston is the petrochemical capital of the country, as well as home to several major active oil and natural gas fields. Exports of liquefied natural gas (LNG) could also attract larger vessels — of the nearly 70 Neopanamax vessels transiting the expanded Panama Canal since June, two were LNG carriers, and 24 were liquefied petroleum gas carriers.

Why Big Ships Could Mean Bigger Problems for Texas’ Air Quality

Texas is home to 18 ports along the Gulf Coast. Seven Texas ports are ranked in the top 50 nationally for total tonnage, according to the US Department of Transportation:

Port of Houston

Port of Beaumont

Port of Corpus Christi

Port of Texas City

Port Arthur

Port Freeport

Port of Matagorda/Point Comfort.

Most of these ports face air quality challenges, and are located in regions that have not been able to meet health-based air pollution standards for ground-level ozone (also known as smog).

Newer mega-containerships have been designed to carry two to three times as many containers as those built to travel through the Panama Canal before its expansion (the “Panamax” vessels). Since engine power does not have to scale up at the same rate as cargo capacity, they use engines that are only ten percent larger.

Because the size of an engine has a direct impact on emissions, the expectation is that, all things being equal, these ships would increase emissions by ten percent over conventional “Panamax” ships – but would carry up to 300 percent more cargo (so fewer ships would be needed). Newer ships are also required to meet International Maritime Organization requirements that limit emissions from ship exhaust, so newer ships typically have cleaner engines.

If these newer ships are able to carry more cargo and have newer engines that are cleaner, then why should we be worried about their impact on air quality in Texas?

It’s because ship emissions are the largest source of pollution at ports, and emissions from increased ship traffic at Texas ports could negatively impact the air we breathe.

Emissions from ships come from the large propulsion engines used for transiting and maneuvering, as well as auxiliary engines for hoteling while the ship is at dock. Emission inventories commonly show more than half of nitrogen oxides and particulate matter emissions at ports coming from ocean-going vessels, with the remaining emissions shared among cargo-handling equipment, drayage trucks, locomotives, and harbor vessels.

This means that if either more ships come to call or ships stay longer, we could see deterioration in air quality from more emissions of harmful pollutants in Texas. Either of the following scenarios could happen:

Bigger ships take more time to load and unload, which can increase emissions of ships hoteling, as well as cargo-handling equipment and other sources, if landside operations are not able to handle the increased cargo volume. This can also contribute to congestion issues.

Bigger ships may offload cargo to smaller ships (also called “transshipment”) at Texas ports, meaning we could see a higher volume of ships because of the additional cargo being transported. Moreover, these smaller ships may not be newer, cleaner-emitting ships.

More Solutions Available to Address Ship Emissions

The good news is that today, ports in Texas have more options to address ship emissions than they did in the past.

In addition to shorepower systems, which allow ships to “plug-in” to the electrical grid instead of running engines while at dock, there are now two emissions capture technologies that show some promise for capturing emissions of pollutants that are harmful to human health. These emission capture technologies operate by containing many of the emissions that directly affect human health (like nitrogen oxides and particulates) at the smokestack of a vessel while it continues to run its engines. This is a compromise, however, since fuel continues to be burned to run the vessel’s engines, so climate-polluting greenhouse gas pollution continues to be emitted.

Ten years ago there were few if any options for addressing ship emissions. Today, shorepower installations have been deployed (or planned) at ports and marine terminals around the country (including throughout California, Seattle/Tacoma, Halifax, and the planned installation at the Brooklyn Cruise Terminal at the Port Authority of New York/New Jersey), and new demonstrations of emissions capture technologies are being conducted.

Texas stands to benefit economically from the Panama Canal expansion, but these benefits should not happen at the cost of breathing clean air. EDF has called on lawmakers, as well as Texas ports, to make clean air projects a priority before, and we’ll continue to work to move these efforts forward.

In future blogs, we will share more about these promising technologies and how investments in these technologies could help reduce ship emissions at and around ports in Texas.

As readers of this blog will know, Texas often prides itself on being a great place to do business. As you will see below, business can also have an important voice in keeping Texas (and the U.S.) a great place to live.

This post, originally published on the EDF+Business blog, is from our colleague Tom Murray, VP, Corporate Partnerships Program who notes that leading companies recognize the business value of clean trucks, for business, for health, and for the planet. We wanted to share this post with Texas Clean Air Matters because of its relevance to the Lone Star State. Our state stands to benefit significantly from the new rules, especially since truck freight in Texas is forecast to grow 120 percent by 2040.

— The EDF Texas Clean Air Matters Team

A number of America’s most iconic brands helped pave the way for the new Clean Truck standards announced August 16th by the U.S. EPA and DOT. Nearly 400 companies, large and small, publicly urged strong, final fuel efficiency and greenhouse gas standards for heavy trucks.

Through their action, these companies have reaffirmed a basic truth of business today: to be a “leader”, companies must align their sustainability goals and strategies with their external engagement on policy.

Indeed, common-sense efforts to cut climate pollution have gone mainstream in business. Earlier this year Microsoft, Google, Amazon, Apple and others raised the bar on corporate climate leadership by standing up for the clean power plan. Colgate-Palmolive, Hewlett Packard Enterprise, Nike, Starbucks and over 100 other companies built on this trend by urging “the swift implementation of the Clean Power Plan and other related low-carbon policies so that we may meet or exceed our promised national commitment and increase our future ambition.”

But this corporate support of the clean truck standards goes even further: it’s another step in the evolution of corporate climate leadership. This is beyond simply supporting good policy; a number of these companies are actively shaping it to deliver significant sustainability benefits. Among the companies that distinguished themselves in this effort are:

PepsiCo: the largest private fleet in the U.S. led the way in demonstrating the alignment between its sustainability objectives and its policy advocacy through an op-ed, and expert testimony.

Walmart, the 3rd largest private fleet in the U.S., was highly proactive and constructive in its engagement on the clean truck phase two program, supporting it with public statements, and expert commentary.

Honeywell, Achates Power and a number of other innovators made clear that they were ready to meet the challengeof building more fuel efficient trucks.

There were hundreds more examples like these—each one of them a proactive leadership action that demonstrates the new frontier for corporate leadership.

Securing these protections was a real team effort. The Pew Charitable Trusts organized a letter of support for strong standards signed by IKEA, Campbell’s Soup, and many others. Ceres brought forward a strong statement from General Mills, Patagonia and more. The Union of Concerned Scientists articulated how strong rules would benefit leading fleets, including UPS, Coca-Cola and Walmart. Together, these efforts marshalled an unprecedented level of corporate support for a critical piece of climate policy.

So, if your company is among the now hundreds of companies actively advocating for strong climate protection measures, thank you. We look forward to your continued leadership and engagement on other critical advances, including implementation of the Clean Power Plan and moving forward with reductions in methane emissions. We want to work with you to shape protective policies that also make business sense.

If, however, your company is still stuck at talking the talk, it’s time to start walking the walk when it comes to supporting common sense measures like the Clean Trucks program.

You’re falling behind the leadership pack in the one of the world’s most important races.

An oxymoron is “a combination of words that have opposite or very different meanings,” according to Merriam-Webster (a commonly given example is “jumbo shrimp”). Ports – with an immense amount of traffic and heavy cargo coming and going – have recently been equated with power plants in terms of air pollution. Some might suggest that the concept of a ‘sustainable port’ is impossible.

It’s not, actually.

Earlier this year, the first “zero-emissions terminal in the world” opened at a port in the Netherlands using equipment that releases no pollutants from a tailpipe and on-site wind energy for power demands. And closer to home, large ports in the U.S. have taken promising steps, like the Port of Seattle’s aggressive energy efficiency initiatives.

Texas ports have some work to do, both to keep up with strong economic growth (like the record year the Port of Houston is projecting) and because Texas already leads the country in climate-altering greenhouse gas emissions. But the good news is there is a way they could very quickly up their game: the use of renewable energy. And in the midst of historic climate talks in Paris, there is no better time for Texas ports to consider commonsense investments that safeguard both public health and the global climate.

How can ports incorporate renewable energy?

Renewable energy projects at ports typically focus on the installation of solar arrays, as well as wind turbines. Solar represents the simplest way of tapping into renewable potential because port and terminal facility construction can be designed to accommodate large arrays of solar panels on rooftops. In the case of wind farms, ports often control or own large tracts of land that can be used to site wind turbines, making it easier to work with energy developers directly. Moreover, because of its industrial history, the land may already have the necessary infrastructure to get the electricity onto the grid. And in the future, we may see other forms of renewables at industrial facilities like ports, including tidal and other hydropower technologies that can harness the power of moving water, or geothermal applications that use differences in temperature for power generation.

When thinking about the overall sustainability of their operations, ports should see renewable energy as a foundation upon which to build other green initiatives. Renewable energy generated on-site eliminates electricity-related emissions and makes true “zero-emissions” – or the idea that the facility will emit no pollution – a real possibility. To get there, ports would also need to invest in clean technologies for moving cargo, such as battery-electric terminal tractors or fuel cell drayage trucks powered by zero-emission sources (both available today!).

One easy way for ports to get started right now? Encourage port tenants to pursue projects that can take advantage of the Business Energy Investment Tax Credit before it is reduced significantly in late 2016.

Renewables bring benefits to ports

Ports significantly impact the air quality of nearby communities because port operations concentrate emissions from ships, trucks, cargo-handling equipment, and locomotives. Although renewable energy projects don’t reduce emissions from these sources, they can help improve regional air quality by offsetting pollution that would have otherwise been released from a local power plant. They can also form building blocks for future sustainability initiatives. For example, while ships are at berth, they typically run their enormous engines to generate power for auxiliary systems (e.g., the lights and heating). Vessel shorepower would allow ships to “plug in” to the electric grid instead, saving fuel and reducing harmful emissions for communities living near port facilities.

Another green option: a joint community renewable energy installation that can reduce energy costs for neighbors interested in partnering with a port on a project. These community projects allow participants to “buy” into a solar project, for example, without having to install panels of their own. They then receive credits to lower their electricity bills in exchange for the electricity produced.

Second, onsite renewables can enhance resiliency, especially in the face of more intense coastal storms and hurricanes. The Texas coast (all 367 miles of it) is vulnerable to tidal flooding and tropical storms; these events can cause significant disruption and be quite costly, as evidenced by the $67 billion price tag for named storms (such as Dolly, Rita, Allison) that have impacted Texas since 2000. But if a storm shuts down the central grid for days, distributed energy like solar panels can still provide electricity. Energy storage can take this a step further, enabling the use of renewables for standby or backup generation instead of commonly-used diesel generators. Moreover, traditional standby generators do not have to meet the strictest emissions standards when used for emergency purposes, so their use when the electric grid is offline means nearby communities are subject to even more diesel pollution.

Furthermore, renewable energy uses little to no water to produce electricity, versus coal, natural gas, and nuclear, which are all very thirsty energy resources. Freshwater availability will continue to be a challenge as climate change advances, and will particularly pose a problem for ports located in and around drought-prone areas, such as at the Port of Houston, Port of Beaumont, and the Port of Corpus Christi. The more that ships and ports can choose low-water-intensive energy resources or reduce energy use overall, the more they can alleviate the pressure on local grids, especially in periods with increasingly intense droughts and heatwaves.

The following table summarizes examples of renewable energy installations of ports and estimates of potential benefits from such projects:

In Texas, the Port of Corpus Christi has undertaken an on-site renewable energy project, partnering with others to build the Harbor Wind farm that boasts enough energy to power 2,500 homes each year. And while purchasing green energy on a utility bill is a good first step, the landscape is ripe for more Texas ports to embrace on-site renewables—Texas has by far the most potential for solar and wind generation in the United States.

All successful organizations should be forward-looking, and port authorities in Texas are no exception. Renewable energy projects offer ports a way to invest in energy sources whose costs are decreasing and will continue to drop. They also provide the opportunity to offset some of the harmful climate and air pollution emissions that occur at power plants, as well as develop on-site energy for emergency situations. Finally, renewables can reduce water demands in a state that faces drought on a regular basis, and will likely be even more water-stressed with the onward march of climate change. Of course, ports can (and should) do more to ensure their continuing operations are sustainable, but it’s clear that renewable energy projects make sense for ports to undertake immediately.

If Texas ports grab the renewable energy bull by the horns, “sustainable ports” could transcend oxymoron to become the new normal.

Cheryl Bynum, National Program Manager at US EPA, SmartWay, presents the 2015 Affiliate Challenge Honoree award to Environmental Defense Fund.

EDF has long been a champion of the SmartWay program, EPA’s highly successful public-private partnership between more than 3,000 organizations that are committed to improved fuel efficiency and environmental performance. So we were thrilled when EPA named us a 2015 Affiliate Challenge Honoree for our efforts to promote the program in our Green Freight Handbook.

We were recognized last week at the Transportation Intermediaries Association (TIA) conference, and we will participate in a virtual awards ceremony tomorrow. We have impressive company: the American Trucking Association, Penske, TIA, Wisconsin Clean Cities, and the North Central Texas Council of Governments were all named as honorees as well.

The program has helped facilitate positive results in many areas, perhaps most impressively in the goods movement sector.

It’s Actually OUR Honor to be an EPA SmartWay Affiliate!Click To Tweet

Success in Texas and across the nation

SmartWay’s approach is one of partnership. The program brings together partners from the public and private sectors, to demonstrate the way modified operational practices can benefit both the environment and the bottom line.

Almost 200 SmartWay partners call Texas home, and the numbers are growing, thanks to efforts from organizations like the North Texas Council of Governments, a fellow honoree that has launched a Freight Outreach Center to provide information about SmartWay to fleets.

Across the nation, companies have saved $20 billion dollars over the past ten year years through the fuel-saving steps developed by SmartWay. And the program has kept 60 million tons of greenhouse gas emissions out of our atmosphere and conserved 144 million barrels of oil in that process, as well.

The program has a simple and logical focus on fuel economy. Measures that save fuel are incentivized, and partners who embrace them are recognized for helping the environment. Partners commit to completing a simple environmental analysis comparing fleet performance from one year to the next. As a result, a growing awareness of more advanced technologies, as well as an understanding of the benefits of reducing harmful air pollutants has begun to emerge to a more widespread audience.

And that broader community is taking their newfound awareness home. For example, the next time they see the ubiquitous black smoke emerging from the tailpipe of the neighborhood trash truck, they will be far more likely to consider the tons of air pollution emitted over the course of that truck’s lifespan, and see it for the public health hazard it is. Those kinds of realizations can be startling for many people. But increased awareness about air pollution – and the available means to do something about it – is a critical step in the effort to build broad support for cleaner air for everyone.”

SmartWay also has provided an invaluable laboratory for proving the effectiveness of fuel saving technologies. As these technologies, such as aerodynamic trailer improvements, have proven cost-effective, markets have responded with increased adoption of these solutions. Nationally, the EPA SmartWay program has helped to demonstrate the strong economic value of truck fuel efficiency, which is at the heart of current efforts to secure bold, new standards.

More than ten years ago, SmartWay promised to show how proactive environmental practices could be good for business and then made good on that promise. SmartWay partners have saved billions of dollars in fuel, while eliminating tens of thousands of tons of harmful pollutants. Let’s build on this momentum and make the next ten years even more successful.

Rep. Issac teaching fellow lawmakers about the TERP program and benefits.

Last week, I went to the Texas Capitol to show support for Representative Jason Isaac’s efforts to educate his fellow lawmakers on the importance of the Texas Emissions Reduction Plan (TERP). A diverse group of stakeholders, including Texas businesses, local governments, environmental groups, and others are calling on the Texas Legislature to 1) preserve an essential program that helps improve air quality in Texas, and 2) use the funds that have already been collected from Texas businesses and residents for their intended use – healthier air quality. Representative Isaac has jokingly referred to the unique coalition of industry, government, and environmental organizations as “dogs and cats living together,” but the solidarity is an important indication of both the success and importance of the TERP program to the health of Texans and our economy. But only if the State Legislation spends the funds already collected rather than keep the money in state coffers.

Texas Lawmakers: Restore #CleanAir Funding and Do the Right Thing for Texas #TXlegeClick To Tweet

Created by the Texas Legislature in 2001, TERP has been instrumental in improving air quality in metropolitan areas in Texas. Since its inception, more than one billion dollars have been invested in cost-effective, voluntary grants to incentivize the replacement and disposal of old, dirty engines and equipment with new, cleaner models. These mobile sources alone account for 70-80 percent of the nitrogen oxide (NOx) pollution in both Houston and Dallas-Fort Worth – one of the pollutants linked to harmful ground-level ozone, commonly known as smog. Thankfully, Texas lawmakers had the foresight to create a program that helps Texans breathe cleaner air and enjoy strong economic growth.

What is the problem, then?

For years, the Texas Legislature has withheld a significant portion of the collected money in order to balance the budget, rather than using the funds to improve air quality for Texas citizens and businesses. Using information provided by the Texas Commission on Environmental Quality, I estimate that only $0.46 of every dollar collected from heavy-duty truck owners and operators has been used for its original purpose. Nearly $1 billion in total—only half of what has been collected—has been withheld, instead of being used to improve air quality in Texas. Retaining close to 50 percent of the total taxpayer money collected for TERP has caused Texas to miss opportunities to meet clean air goals, like reducing ground-level ozone in the Houston and Dallas-Fort Worth regions, and may have endangered other areas that could fail to meet health standards.

What can Texas lawmakers do?

Immediately create an emergency appropriation of $300 million for turn-key TERP projects that could have been implemented had lawmakers fully funded the program.

Based on my calculations, this funding alone would reduce at least 30,000 – 40,000 tons of NOx pollution, representing nearly a quarter of the total NOx reductions achieved through the TERP program thus far. To help put it in perspective, this amount of pollution represents over 30 percent of the yearly NOx emitted from all the cars, trucks, and heavy-duty equipment sources in Houston or Dallas-Fort Worth.

Fairly match revenues to appropriations and use taxes and collected fees for their intended purpose.

Projected revenue for the 2014-2015 biennium is $359 million. This money could be used to target reductions in poor air quality areas that are working to prevent EPA nonattainment designation, in addition to improving air quality in areas with known air quality health risks.

Use Texas willpower and innovation to ensure our state meets science-based standards for healthy air quality, while saving businesses money and keeping Texas a great place to live.

Using TERP funding for cost-effective, clean air projects, like replacing dirty drayage trucks or construction equipment with more efficient models, fulfills the promise that legislators made to the people back in 2001. It’s time to turn that promise into a reality.

Companies don’t traverse the Green Freight Journey in one day. But there is one day next week where shippers can begin down the path by learning about the five-step framework for freight optimization projects. We first highlighted this webinar opportunity and how Texas is poised to gain from sustainable freight strategies last month, and now is the perfect time for companies to consider how they can take advantage of best practices and proven tools to reduce operating costs and greenhouse gas emissions.

Every company that uses the freight system to move products to market has the opportunity to embark on the Green Freight Journey. Join EDF on January 14 at 11am CST for a webinar that will introduce you to the Green Freight Journey framework, review real-world case examples, and highlight tools EDF is making available to help companies progress on their journey.

During the webinar, participants will:

Be introduced to the steps of a Green Freight Journey and receive tips for success on each;

Hear real-world examples of companies that have cut emissions and costs by optimizing freight moves;

Review existing tools, including a green freight benchmarking survey and the EDF Green Freight Handbook; and

Large ocean-going ships, like container vessels, tankers, and cruise ships are often called floating smokestacks because they have historically burned fuel hundreds to thousands of times dirtier than all other mobile sources, including cars, trucks, trains and construction equipment. That’s why the North American Emissions Control Area (ECA), approved by the International Maritime Organization (IMO) in 2010, requires these vessels to reduce harmful emissions by switching to cleaner fuels when transiting within 200 nautical miles of U.S. and Canadian coastlines. This means healthier air for communities across Texas and the rest of the country, as these measures are estimated to reduce millions of pounds of harmful air pollutants and save tens of thousands of lives.

The ECA went into effect in 2012, requiring ships to begin using modestly cleaner fuels. Switching from higher-sulfur fuel to cleaner, lower-sulfur fuel means lower levels of harmful emissions from ships, such as sulfur oxides (SOx) and particulate matter (PM), which contribute to poor air quality across the nation. These pollutants are also associated with adverse respiratory effects and are a threat to public health.

The next phase of the cleaner fuel standards begin on January 1st, 2015, when ships that enter North American waters will be required to burn even cleaner fuel – with a sulfur content limit ten times cleaner than today’s standard. Alternatively, vessels can install pollution control technology to make equivalent reductions in harmful sulfur dioxide. EPA estimates that these standards will result in more than 30,000 lives saved by 2030.

The third and last phase of the fuel standards begins in 2016, when the same ships will install technologies to reduce smog-forming nitrogen oxides (NOx) to achieve even greater health protections. Communities across the US are depending on the pollution reductions that will result from the timely implementation of these critical standards – which are estimated to reduce NOx in the US by 1.2 million tons annually by 2030.

Texas, as a major freight hub with significant ocean vessel activity, is one of the many states that will see air quality benefits from the ECA fuel standards. Ports along the Texas Gulf Coast handle significant ship traffic – more than 8,000 vessels move through the Port of Houston each year – and the cleaner fuel means a direct reduction in emissions released close to communities. The ECA is particularly important in that it will help many regions in the state, including Houston-Galveston-Brazoria and Dallas-Fort Worth, meet national health-based air quality standards.

EDF has been a longtime advocate for the North American ECA, and many of our partners, including the Port of Houston Authority and the Houston-Galveston Area Council, have supported the effort as well. EDF welcomes the stronger air quality and public health standards for the maritime sector. It’s great to start the New Year off on the right clean air foot!